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    Management: An Overview

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    Organization Organization is a system which operates through

    human activity.

    Organizations are very complex social formations,their links cant be described with only one theory.

    Organization Theories concerns 3 levels:

    Macro: cooperation among different organization

    Mezzo: structures of the organizations, and influencingfactors

    Micro: behavior of the members of the organizations,motivation, conflict etc.

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    What is Management?

    Definition: Coordinating work activities so

    that they are completed efficiently and

    effectively with and through other people

    Efficiency: getting the most output from

    the least input

    Effectiveness: completing activities so thatthe organizations goals are attained.

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    Management is

    EffectivenessEffectiveness

    EfficiencyEfficiency

    Getting workGetting workdone throughdone through

    othersothers

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    Managerial Roles

    Figurehead

    Leader

    Liaison

    Monitor

    Disseminator

    Spokesperson

    Entrepreneur

    Disturbance

    Handler

    ResourceAllocator

    Negotiator

    Interpersonal Informational Decisional

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    Management Functions

    Planning

    Organizing

    Staffing

    Leading

    Controlling

    Making Things Happen

    Meeting the Competition

    Organizing People,Projects, and Processes

    Classical

    Management Functions

    Updated

    Management Functions

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    Levels of Management

    CEO

    COO

    CIO

    General Mgr

    Plant Mgr

    Regional Mgr

    Office ManagerShift Supervisor

    Department Manager

    Team Leader

    Top Level Management

    Middle Level Management

    First-Line

    Management

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    Top ManagersResponsible for

    Creating a context for change

    Developing attitudes of commitment

    and ownership in employees

    Creating a positive organizational

    culture through language and action

    Monitoring their business environmentsprince dudhatra-9724949948

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    Middle Managers

    Responsible for

    Setting objectives consistent with top

    management goals, planning strategies

    Coordinating and linking groups,

    departments, and divisions

    Monitoring and managing the performance

    of subunits and managers who report to them

    Implementing the changes or strategies

    generated by top managersprince dudhatra-9724949948

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    First-Line Managers

    Responsible for

    Managing the performance of

    entry-level employees

    Teaching entry-level employees

    how to do their jobs

    Making schedules and operating plans based on

    middle managements intermediate-range plansprince dudhatra-9724949948

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    What Companies Look for in

    Managers

    Technical Skills Human Skill

    Conceptual Skill Design Skill

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    Core skills and their use in the

    different levels

    Conceptual skills

    Human skills

    Technical skills

    Managerial levels

    Lower Middle Top

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    Management Theory

    Pre-C

    lassical

    Classical Approaches

    Frederick Taylor: Scientific Management (1886)

    Frank and Lillian Gilbreth: Time/motion studies (later 1800s)

    Henri Fayol: 14 Principles of Management (1880s-1890s) MaxWeber : Bureaucracy (1920s)

    Behavioral Approaches The Hawthorne Experiment (1927)

    MacGregors Theory X and Theory Y (1960)

    Quantitative Approaches

    Contemporary Approaches Ouchis Theory Z (1981)

    Contingency Management

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    Classical Approaches

    Frederick Taylor: Scientific Management(1886)

    Frank and Lillian Gilbreth: Time and motionstudies (later 1800s)

    Henri Fayol: Fourteen Principles of

    Management (1880s-1890s) Max Weber : Bureaucracy (1920s)

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    Frederick W. Taylor

    Developed Scientific Management

    Laid foundation for the study of management Key ideas:

    Management as a separate field of study

    Explicit guidelines for scientific study of

    management functions Time studies for setting standards

    Functional specialization of managers duties

    Piece-rate Incentive systems

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    Taylors Principles of Management The one best way.

    Management using scientific observation

    Scientific selection of personnel Put right worker in right job, find limitations, train

    Financial incentives Putting right worker in right job not enough A system of financial incentives is also needed

    Functional foremanship Division of labor between manager and workers Manager plans, prepares, inspects Worker does the actual work Functional foremen , specialized experts,

    responsible for specific aspects of the jobprince dudhatra-9724949948

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    Frank & Lillian Gilbreth

    Time and motion efficiency experts Developed therbligs, breakdown of manual skills

    into 16 actions Frank was a lazy bricklayer looking for an

    easier way and Lillian was a psychologist.

    Endorsed piece-work and suggested a higher

    rate per unit if his directions were followed. Disagreed with Taylors idea that

    management should choose which workerstook which jobs.

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    Henri Fayol

    First came up with the five basic

    functions of managementPlanning,Organizing, Staffing, Directing,Communicating, and Controlling

    First wrote that management is a set of

    principles which can be learned. Developed Fourteen Principles of

    Management

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    HENRI FAYOLsFOURTEEN PRINCIPLES OF MANAGEMENT

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    1. Specializationoflabor. Specializing encourages

    continuous improvement in skills and the development ofimprovements in methods.

    2. Authority. The right to give orders and the power to exact

    obedience.

    3. Discipline. No slacking, bending of rules.4. Unityofcommand. Each employee has one and only one

    boss.

    5. Unityofdirection. A single mind generates a single plan

    and all play their part in that plan.6. SubordinationofIndividual Interests.When at work,

    only work things should be pursued or thought about.

    7. Remuneration. Employees receive fair payment for

    services, not what the company can get away with.prince dudhatra-9724949948

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    8. Centralization. Consolidation of managementfunctions. Decisions are made from the top.9. Scalar Chain (line of authority). Formal chainof command running from top to bottom of theorganization, like military10. Order. All materials and personnel have aprescribed place, and they must remain there.11. Equity. Equality of treatment (but notnecessarily identical treatment)12. Personnel Tenure. Limited turnover ofpersonnel. Lifetime employment for good workers.13. Initiative. Thinking out a plan and do what ittakes to make it happen.14. Esprit de corps. Harmony, cohesion amongersonnel.

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    Max Weber

    Coined bureaucracy: the perfect office

    Well defined chain of command Clear division of work (job descriptions)

    Procedures for any situation

    Impersonality Employment and promotion based on

    technical competence.

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    Behavioral Approaches

    The Hawthorne Experiment (1927)

    Chester Barnard (1930s 1960s)

    Herbert Simon (1947)

    MacGregors Theory X and Theory Y (1960)

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    The Hawthorne Experiment Research conducted at the Hawthorne plant

    of the Western Electric Company nearChicago, 1927-1937

    Initial study: effects of lighting on workerperformance

    But the Hawthorne Effect was insteadidentified The workers values, desires, and needs may be

    more important than physical conditions. Workers want to have input. Workers want to be respected.prince dudhatra-9724949948

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    Theories X and Y Conducted in 1960s by Douglas McGregor

    Theory X: classical theory

    Most people dislike work and responsibility,they are motivated only by money and donot care about the job.

    Close supervision is required and peoplemust be carefully controlled and coercedinto working

    Average person prefers direction

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    Theories X and Y Theory Y: Modern Management Theory

    People often enjoy their work and will exercise

    self-control at work. People are motivated by wanting to do a good job

    and will do well if the opportunity is presented

    People have capacity for imagination, ingenuity,

    and creativity People enjoy expending physical and mental effort

    in work as much as play and rest

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    Contemporary Approaches

    Ouchis Theory Z (1981)

    Contingency Management

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    Ouchis Theory Z Theory Z

    Value of culture in an industrial society

    Intimate and cooperative workrelationships

    Alienated in work environment in which

    family ties, traditions, and socialinstitutions are minimized

    Workers have strong sense of moralobligation, discipline and order

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    Contingency Management

    Managing in Different and ChangingSituations

    Require managers to use different approaches andtechniques

    Contingencyperspective - different ways ofmanaging are required in different organizationsand different circumstances

    stresses that there are no simplistic or universalrules

    contingencyvariable Prentice Hall,2002

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    Brief Behavioral

    Mary Parker Follet : Power Sharing

    Chris Argyris: Model I & Model II Organisations

    Quantitative Approach

    Management Science

    Operation Management

    MIS

    System Theoryprince dudhatra-9724949948